Title
Consider and take action on a resolution authorizing City Staff to write-off inactive utility accounts for a total amount of $531,542.10 (Director of Finance)
Background:
Approval of this item will authorize staff to “write-off” delinquent water utility accounts that are determined to be uncollectible. The Council last took action to write off accounts on December 11, 2018. We are requesting that additional accounts deemed uncollectible from the years 2009 to 2020 with a total balance of $531,542.10 be authorized for write-off.
The collection process for utility accounts is as follows:
A. At the time that the account is closed, the final reading is taken, and the bill is submitted to the customer. This bill is due within 20 days.
B. If the payment is not received, a reminder is sent to the customer and internal collection efforts are made.
C. At 90 days past due, the accounts are turned over to an external collection agency.
These uncollectible accounts have been with the collection agency for at least one year and still remain uncollectible. Approval of this action will allow staff to remove the accounts from the financial statements as uncollectible accounts. The detailed balances will remain in our utility records and will be recovered in the future if a write-off customer applies for water service within the City.
Attachments:
1. Proposed Resolution
2. List of Write-Off-Balances
FUNDING
{X} Funding in the amount of $531,542.10 is available from Utility Fund Allowance for Doubtful Accounts #1020-1411.
STRATEGIC PLANNING
{X} NOT APPLICABLE